Global mining giants Rio Tinto and Glencore have terminated talks regarding a US$260 billion merger. The decision came after both parties failed to reach a valuation and governance agreement that satisfied their respective shareholders.

Glencore rejected a proposal where Rio Tinto would keep the top leadership roles, saying that the terms significantly undervalued its copper division and overall contributions. Rio Tinto also concluded the deal lacked sufficient shareholder value.

The talks ended as the regulatory deadline for a firm offer arrived, preventing Rio from pursuing a new bid for six months under UK takeover rules. This represents the third time that discussions between these two commodities giants have collapsed.